S&P 500’s $11 Trillion Run Shows Signs of Fatigue
A rally that drove stocks to a series of all-time highs showed signs of exhaustion, with investors awaiting this week’s key jobs data and Jerome Powell’s remarks for clues on whether the Federal Reserve will cut rates in December. Bonds and the dollar barely budged.
Wall Street also took some risk off the table after South Korean President Yoon Suk Yeol declared martial law and lawmakers voted to request lifting the shock measure, with the nation’s assets suffering intense volatility. US equities struggled to make headway, following an $11 trillion surge that sent S&P 500 to its 54th record this year. Some traders noted that the relentless advance drove sentiment gauges toward extremes, with the benchmark hovering near overbought levels.
Just a few days ahead of the all-important US payrolls report, data showed job openings picked up in October while layoffs eased, suggesting demand for workers is stabilizing. That’s important for Fed officials who are trying to avoid any further weakening in the labor market as they gradually lower interest rates.
The S&P 500 fell 0.1%. The Nasdaq 100 fluctuated. The Dow Jones Industrial Average slid 0.2%. Salesforce Inc. is due to report results after the close. Germany’s DAX topped 20,000 for the first time.
Treasury 10-year yields rose two basis points to 4.21%. South Korean assets regained some lost ground as authorities vowed to provide “unlimited liquidity” to markets. Oil rose as the US imposed more sanctions targeting Iranian crude and OPEC+ made progress on a deal to keep output off the market.
Source : Bloomberg
